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STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31ST MARCH 2016

Part 1 (Rupee in Crore)
Sl. No. Particulars Standalone Consolidated
Quarter ended 31.03.2016 (Unaudited) Quarter ended 31.12.2015 (Unaudited) Quarter ended 31.03.2015 (Unaudited) Year ended 31.03.2016 (Audited) Year ended
31.03.2015 
(Audited)
Year ended 31.03.2016 (Audited) Year ended 31.03.2015 (Audited)
1 2 3 4 5 6 7 8 9
1 Income from operations
(a) Net sales (net of electricity/excise duty) 17990.09 17317.50 19229.94 70049.18 72637.75 78136.12 79943.97
(b) Other operating income 122.53 95.71 78.71 457.62 599.19 569.38 667.97
Total income from operations (net) 18112.62 17413.21 19308.65 70506.80 73236.94 78705.50 80611.94
2 Expenses
(a) Fuel cost 10163.00 10580.28 12509.48 43793.25 48833.57 46496.08 51449.50
(b) Employee benefits expense 910.36 876.76 913.98 3609.32 3620.71 3836.43 3840.62
(c) Depreciation and amortisation expense 1471.01 1393.45 1391.19 5425.32 4911.65 6153.41 5564.61
(d) Other expenses 1581.25 1317.94 1166.20 5591.24 4577.45 9209.83 7682.65
Total expenses 14125.62 14168.43 15980.85 58419.13 61943.38 65695.75 68537.38
3 Profit from operations before other income, finance costs and exceptional items (1-2) 3987.00 3244.78 3327.80 12087.67 11293.56 13009.75 12074.56
4 Other income 448.08 229.97 570.73 1189.27 2100.42 1234.06 2063.46
5 Profit from ordinary activities before finance costs and exceptional items (3+4) 4435.08 3474.75 3898.53 13276.94 13393.98 14243.81 14138.02
6 Finance costs 859.90 825.05 707.49 3230.36 2743.62 4151.26 3570.37
7 Profit from ordinary activities after finance costs but before exceptional items (5-6) 3575.18 2649.70 3191.04 10046.58 10650.36 10092.55 10567.65
8 Exceptional items - - - - - - -
9 Profit from ordinary activities before tax (7+8) 3575.18 2649.70 3191.04 10046.58 10650.36 10092.55 10567.65
10 Regulatory income / (Expense) (Refer note 9c) (3.94) (38.43) (68.84) 12.09 (103.71) 10.99 (111.44)
11 Net profit from ordinary activities before tax (9+10) 3571.24 2611.27 3122.20 10058.67 10546.65 10103.54 10456.21
12 Tax expense:
(a) Current tax (refer note 4) 732.83 82.26 272.25 (359.97) 361.69 (209.56) 469.88
(b) Tax expense/(saving) pertaining to rate regulated activities (refer note 9 c) (0.84) (15.43) (23.40) 2.58 (35.25) 2.57 (35.25)
(c) Deferred tax (366.39) 485.30 632.89 226.88 888.75 242.57 1023.87
  (d) Less: Deferred asset for deferred tax liability (refer note 11) (489.23) 433.73 703.57 53.73 959.40 94.47 994.66
    Total tax expense (a+b+c-d) 854.83 118.40 178.17 (184.24) 255.79 (58.89) 463.84
13 Net profit from ordinary activities after tax (11-12) 2716.41 2492.87 2944.03 10242.91 10290.86 10162.43 9992.37
14 Extraordinary items (net of tax expense) - - - - - - -
15 Net profit for the period (13-14) 2716.41 2492.87 2944.03 10242.91 10290.86 10162.43 9992.37
16 Share of profit/(loss) of associates      

 

  - -
17 Minority interest           (20.38) 6.03
18 Net profit after taxes, minority interest and share of profit of associates (15+16-17) 2716.41 2492.87 2944.03 10242.91 10290.86 10182.81 9986.34
19 Paid-up equity share capital(Face value of share Rupee 10/- each) 8245.46 8245.46 8245.46 8245.46 8245.46 8245.46 8245.46
20 Paid-up debt capital       91809.76 85995.34 109889.31 101611.85
21 Reserves excluding revaluation reserve as per balance sheet       80536.54 73411.89 80951.05 73848.52
22 Debenture redemption reserve       4608.73 3624.60 4608.73 3624.60
23(i) Earnings per share (before extraordinary items) - (of Rupee 10/- each)(not annualised) (in Rupee):
(a) Basic 3.29 3.02 3.57 12.42 12.48 12.35 12.11
(b) Diluted 3.29 3.02 3.57 12.42 12.48 12.35 12.11
23(ii) Earnings per share (after extraordinary items) - (of Rupee 10/- each) (not annualised) (in Rupee):
  (a) Basic 3.29 3.02 3.57 12.42 12.48 12.35 12.11
  (b) Diluted 3.29 3.02 3.57 12.42 12.48 12.35 12.11
24 Debt equity ratio       1.03 1.05 1.23 1.24
25 Debt service coverage ratio (DSCR)       1.72 2.44 1.66 2.27
26 Interest service coverage ratio (ISCR)       5.85 6.72 4.96 5.54

See accompanying notes to the financial results.

STATEMENT OF ASSETS AND LIABILITIES

(Rupee in Crore)
Sl.No. Particulars Standalone Consolidated
As at
 31.03.2016
(Audited)
As at
 31.03.2015
(Audited)
As at
 31.03.2016
(Audited)
As at
 31.03.2015
(Audited)
A EQUITY AND LIABILITIES
1 Shareholders' funds
  (a) Share capital 8245.46 8245.46 8245.46 8245.46
  (b) Reserves and surplus 80536.54 73411.89 80951.05 73848.52
  Sub-total - Shareholders' funds 88782.00 81657.35 89196.51 82093.98
2 Deferred revenue 1946.62 1394.15 1946.62 1394.15
3 Minority interest     892.79 887.94
4 Non-current liabilities
  (a) Long-term borrowings 85083.26 78532.33 102238.28 93362.92
  (b) Deferred tax liabilities (net) 1152.21 979.07 1409.40 1265.61
  (c) Other long-term liabilities 3076.72 2628.85 3908.30 3221.95
  (d) Long-term provisions 436.41 1115.71 469.42 1143.37
  (e) Regulatory liabilities 295.65 307.74 297.56 308.55
  Sub-total - Non-current liabilities 90044.25 83563.70 108322.96 99302.40
5 Current liabilities
  (a) Short-term borrowings 1299.50 - 2141.39 640.15
  (b) Trade payables 5502.86 5953.15 6826.55 7107.63
  (c) Other current liabilities 18384.41 16807.62 22189.00 20202.14
  (d) Short-term provisions 8659.62 7758.75 8933.23 7996.41
  Sub-total-Current liabilities 33846.39 30519.52 40090.17 35946.33
  TOTAL - EQUITY AND LIABILITIES 214619.26 197134.72 240449.05 219624.80
B ASSETS
1 Non-current assets
  (a) Fixed assets (including capital work-in-progress) 158063.46 135342.56 186045.63 159407.09
  (b) Goodwill on consolidation - - - 0.62
  (c) Non-current investments 7949.52 7154.07 14.80 14.12
  (d) Long-term loans and advances 16980.19 15527.89 17885.60 16631.62
  (e) Other non-current assets 1879.78 1746.77 1946.45 1779.73
  Sub-total - Non-current assets 184872.95 159771.29 205892.48 177833.18
2 Current assets
  (a) Current investments 343.63 1878.06 343.63 1887.39
  (b) Inventories 7192.53 7453.00 7959.16 7972.46
  (c) Trade receivables 7843.99 7604.37 10173.98 9249.92
  (d) Cash and bank balances 4406.36 12878.81 5393.32 14251.61
  (e) Short-term loans and advances 2249.26 2407.59 2321.89 2456.70
  (f) Other current assets 7710.54 5141.60 8364.59 5973.54
  Sub-total - Current assets 29746.31 37363.43 34556.57 41791.62
  TOTAL - ASSETS 214619.26 197134.72 240449.05 219624.80

AUDITED SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED FOR THE YEAR ENDED 31ST MARCH 2016

(Rupee  in Crore)
Sl. No. Particulars Standalone Consolidated
Quarter ended 31.03.2016 (Unaudited) Quarter ended 31.12.2015 (Unaudited) Quarter ended 31.03.2015 (Unaudited) Year ended 31.03.2016 (Audited) Year ended 31.03.2015  (Audited) Year ended 31.03.2016 (Audited) Year ended 31.03.2015 (Audited)
1 2 3 4 5 6 7 8 9
1 Segment revenue
- Generation 18256.72 17455.71 19376.24 70780.02 73405.09 75688.76 77892.75
- Others 42.11 27.25 32.86 120.08 112.89 3587.04 3080.92
Total 18298.83 17482.96 19409.10 70900.10 73517.98 79275.80 80973.67
2 Segment results (Profit before tax and interest)
- Generation 4452.84 3553.37 3750.28 13640.47 12554.39 14636.35 13366.13
- Others 11.94 0.72 6.04 (16.43) (4.45) 79.40 37.77
- Total 4464.78 3554.09 3756.32 13624.04 12549.94 14715.75 13403.90
Less
(i) Unallocated finance costs 859.90 825.05 707.49 3230.36 2743.62 4151.26 3570.37
(ii) Other unallocable expenditure net of unallocable income 33.64 117.77 (73.37) 335.01 (740.33) 460.95 (622.68)
Profit before tax 3571.24 2611.27 3122.20 10058.67 10546.65 10103.54 10456.21
3 Capital employed (Segment assets - Segment liabilities)
- Generation 103873.46 96605.71 89148.47 103873.46 89148.47 115655.76 100766.13
- Others 923.60 746.90 820.08 923.60 820.08 2549.41 2395.18
- Un-allocated (16015.06) (8110.96) (8311.20) (16015.06) (8311.20) (29008.66) (21067.33)
- Total 88782.00 89241.65 81657.35 88782.00 81657.35 89196.51 82093.98

The operations of the company are mainly carried out within the country and therefore, geographical segments are not applicable.

Notes:

1. The above results have been reviewed by the Audit Committee of the Board of Directors in their meeting held on 30th May 2016 and approved by the Board of Directors in the meeting held on the same day.

2. The Subsidiaries and Joint Venture Companies considered in the Consolidated Financial Results are as follows.

a) Subsidiary Companies Ownership (%)
1 NTPC Electric Supply Company Ltd.  100.00
2 NTPC Vidyut Vyapar Nigam Ltd. 100.00
3 Kanti Bijlee Utpadan Nigam Ltd. 65.00
4 Bhartiya Rail Bijlee Company Ltd. 74.00
5 Patratu Vidyut Utpadan Nigam Ltd. 74.00
b) Joint venture Companies
1 Utility Powertech Ltd. 50.00
2 NTPC Alstom Power Services Private Ltd.* 50.00
3 NTPC SAIL Power Company Private Ltd. 50.00
4 NTPC-Tamilnadu Energy Company Ltd. 50.00
5 Ratnagiri Gas and Power Private Ltd.* 25.51
6 Aravali Power Company Private Ltd. 50.00
7 Meja Urja Nigam Private Ltd. 50.00
8 NTPC-BHEL Power Projects Private Ltd.* 50.00
9 BF-NTPC Energy Systems Ltd. 49.00
10 Nabinagar Power Generating Company Private Ltd. 50.00
11 National High Power Test Laboratory Private Ltd. 21.63
12 Transformers and Electricals Kerala Ltd.* 44.60
13 Energy Efficiency Services Ltd.* 28.80
14 CIL-NTPC Urja Pvt.Ltd.* 50.00
15 Anushakti Vidhyut Nigam Ltd.* 49.00
16 Trincomalee Power Company Ltd.* 50.00
17 Bangladesh-India Friendship Power Company Private Ltd.* 50.00
All the above companies are incorporated in India except company at Sl.No.16 and 17 which are incorporated in Srilanka and Bangladesh respectively.
* The financial statements are un-audited and certified by the management of respective companies and have been considered for Consolidated Financial Statements of the Group. The figures appearing in their respective financial statements may change upon completion of their audit.

 

3. a) The CERC notified the Tariff Regulations, 2014 in February 2014 (Regulations, 2014). Pending issue of provisional/final tariff orders w.e.f. 1st April 2014 for all the stations, beneficiaries are billed in accordance with the tariff approved and applicable as on 31st March 2014 as provided in the Regulations 2014. The energy charges in respect of the coal based stations are provisionally billed based on the GCV 'as received' measured after the secondary crusher. The amount provisionally billed for the year ended 31st March 2016 is Rupee 69,950.05 crore (previous year Rupee 73,703.99 crore).

b)The Company has filed a writ petition before the Hon'ble Delhi High Court contesting certain provisions of the Tariff Regulations, 2014. On directions from the Hon'ble High Court on the issue of point of sampling for measurement of GCV of coal ‘as received’, CERC has issued an order dated 25th January 2016 (subject to final decision of the Hon'ble High Court) that samples for measurement of coal ‘as received’ basis should be collected from loaded wagons at the generating stations. Company has filed a review petition in respect of this CERC order on 1st March 2016 and the matter is still sub-judice.
Pending disposal of the review petition and issue of provisional/final tariff orders under Regulations, 2014 by the CERC, Sales have been provisionally recognized at Rupee 71,546.92 crore (previous year Rupee 73,133.81 crore) on the basis of said Regulations, wherein energy charges included in sales, in respect of the coal based stations have been recognized based on the GCV ‘as received’ measured after secondary crusher which is generally within the station and at a distance less than one KM from the unloading point of the wagons.
Further, vide order dated 19th February 2016 in respect of a petition filed by a beneficiary, CERC issued directions that the grade slippage between the loading point at the mines' end and unloading point at the generating stations is to be passed on through tariff to the beneficiaries. In the meantime, in compliance to the CERC directions issued vide said order dated 19th February 2016, efforts are being made to explore the mechanism for measurement of GCV of coal ‘as received’, from the loaded wagons at the generating stations. 
In the absence of suitable measurement mechanism of comparable GCV, the financial impact, if any, of the difference between the GCV ‘as received’ measured after collection of samples from loaded wagons at the generating stations and that of GCV ‘as received’ measured after secondary crusher, cannot be quantified and considering the distance between both the measuring points the difference will not be material.

c) Sales for the year ended 31st March 2016 include Rupee 50.74 crore  (previous year Rupee 679.62 crore) pertaining to previous years recognized based on the orders issued by the CERC/Appellate Tribunal for Electricity (APTEL).

d) Sales for the year ended 31st March 2016 include (-) Rupee 1,693.65 crore  (previous year (-) Rupee 1,399.42 crore) on account of income-tax payable to the beneficiaries as per Regulations, 2004. Sales for the year ended 31st March 2016 also  include Rupee 28.12 crore (previous year Rupee 113.96 crore) on account of deferred tax materialized which is recoverable from beneficiaries as per Regulations, 2014.

4.Provision for current tax for the year includes tax related to earlier years amounting to (-) Rupee 2,453.48 crore (previous year (-) Rupee 1,952.53 crore). 

5. During the year, four hydro units of 200 MW each at Koldam w.e.f. 18th July 2015, one thermal unit of 500 MW at Vindhyachal w.e.f. 30th October 2015 and one thermal unit of 660 MW at Barh w.e.f. 18th February 2016 have been declared commercial.

6. The environmental clearance (“clearance”) granted by the Ministry of Environment and Forest, Government of India (MoEF) for one of the Company's ongoing project was challenged before the National Green Tribunal (NGT). The NGT disposed the appeal, inter alia, directing that the order of clearance be remanded to the MoEF to pass an order granting or declining clearance to the project proponent afresh in accordance with the law and the judgment of the NGT and for referring the matter to the Expert Appraisal Committee ("Committee") for its re-scrutiny, which shall complete the process within six months from the date of NGT order. NGT also directed that the environmental clearance shall be kept in abeyance and the Company shall maintain status quo in relation to the project during the period of review by the Committee or till fresh order is passed by the MoEF, whichever is earlier. The Company filed an appeal challenging the NGT order before the Hon’ble Supreme Court of India which stayed the order of the NGT and the matter is sub-judice. Aggregate cost incurred on the project upto 31st March 2016 is Rupee 11,774.77 crore (previous year Rupee 8,732.44 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

7. The Company is executing a hydro power project in the state of Uttrakhand, where all the clearances were accorded. A case was filed in Hon’ble Supreme Court of India after the natural disaster in Uttrakhand in June 2013 to review whether the various existing and ongoing hydro projects have contributed to environmental degradation. Hon’ble Supreme Court of India on 7th May 2014, ordered that no further construction shall be undertaken in the projects under consideration until further orders, which included the said hydro project of the Company. In the proceedings, Hon’ble Supreme Court is examining to allow few projects which have all clearances which includes the project of the Company where the work has been stopped. Aggregate cost incurred on the project up to 31st March 2016 is Rupee  157.31 crore (previous year Rupee 154.57 crore). Management is confident that the approval for proceeding with the project shall be granted, hence no provision is considered necessary.

8. Claims recoverable include Rupee 469.73 crore (previous year Rupee 466.28 crore) towards the cost incurred upto 31st March 2016 in respect of one of the hydro power projects, the construction of which has been discontinued on the advice of the Ministry of Power (MOP), GOI which includes Rupee 185.41 crore (previous year Rupee 214.34 crore) in respect of arbitration awards challenged by the Company before High Court. In the event the High Court grants relief to the Company, the amount would be adjusted against Short-term provisions - Others. Management expects that the total cost incurred, anticipated expenditure on the safety and stabilisation measures, other recurring site expenses and interest costs as well as claims of  contractors/vendors for various packages for this project will be compensated in full by the GOI. Hence, no provision is considered necessary.

9.During the year, the Company has revised certain accounting policies. The impact on accounts due to change in the policies are as under:

a) For more appropriate presentation of the financial statements, the accounting policy relating to capital expenditure on assets not owned by Company has been discontinued with retrospective effect. Based on the guidance available in AS 10 notified by MCA on 30th March 2016 such expenditure on assets not owned by the Company have been capitalised retrospectively as part of the cost of project. As a result, cost amortized till 31st March 2015 amounting to Rupee  75.36 crore as per earlier policy has been written back as prior period adjustments and depreciation has been recalculated retrospectively following the rates and methodology notified by the CERC Tariff Regulations. Due to this change, other expenses are lower by Rupee 53.41 crore,  depreciation and amortisation expense for the year is lower by Rupee 10.08 crore, profit for the year and fixed assets as at 31st March 2016 are higher by Rupee 63.49 crore. 

b) Policy relating to charging off of the items of prepaid & prior period expenses/income to the natural head of accounts has been modified by increasing the threshold limit from Rupee 1 lakh to Rupee 5 lakh. Consequently, Short term loans & advances are lower by Rupee 0.79 crore, Other expenses are higher by Rupee 0.79 crore and profit for the year is lower by Rupee 0.79 crore.

c) During the year, the Company implemented the 'Guidance Note on Accounting for Rate Regulated Activities' issued by the Institute of Chartered Accountants of India (ICAI). Consequently, exchange differences arising from settlement/translation of short-term monetary items denominated in foreign currency, to the extent recoverable from or payable to the beneficiaries in subsequent periods as per CERC Tariff Regulations, which were hitherto accounted as deferred foreign currency asset/liability in line with an opinion of the Expert Advisory Committee of the ICAI, are accounted as ‘Regulatory asset/liability’ during construction period and adjusted from the year in which the same becomes recoverable from or payable to the beneficiaries through regulatory income/expense. Accordingly, the Company has changed the related accounting policies. However, there is no impact on profit after tax for the year ended 31st March 2016.

10. During the year, the Company has reviewed and revised the estimated useful life of certain assets based on technical evaluation. These assets were earlier depreciated as per CERC Regulations. Consequently, with prospective application, profit for the year ended 31st March 2016 and fixed assets (including capital work-in-progress) as at 31st March 2016 are lower by Rupee 27.43 crore. 

11. Regulations, 2014 provide for grossing up of the return on equity based on effective tax rate for the financial year based on the actual tax paid during the year on the generation income. Accordingly, deferred tax provided during the year ended 31st March 2016 on the generation income is accounted as 'Deferred asset for deferred tax liability'. Deferred asset for deferred tax liability for the year will be reversed in future years when the related deferred tax liability forms a part of current tax.

12. During the quarter, the Company has paid an interim dividend of Rupee 1.60 per equity share (par value Rupee 10/-each) for the year 2015-16. The Board of Directors has recommended final dividend of Rupee 1.75 per equity share (par value Rupee 10/- each). The total dividend (including interim dividend) for the financial year 2015-16 is Rupee 3.35 per equity share (par value Rupee 10/-each).

13. The audited accounts are subject to review by Comptroller and Auditor General of India under Section 143(6)&(7) of the Companies Act, 2013.

14. Formula used for computation of coverage ratios DSCR  = Earning before Interest, Depreciation, Tax and Exceptional items /(Interest net of transferred to expenditure during construction + Principal repayment) and ISCR = Earning before Interest, Depreciation, Tax and Exceptional items/(Interest net of transferred to expenditure during construction).

15. For all secured bonds issued by the Company, 100% security cover is maintained for outstanding bonds. The security has been created on fixed assets through English/Equitable mortgage as well as hypothecation of  movable assets of the Company.

16. The financial results of the Company will be available on the investors section of our website http://www.ntpc.co.in and under Corporate Section of BSE Limited and National Stock Exchange of India Limited at http://www.bseindia.com & http://www.nseindia.com.

17. Previous periods/year figures have been regrouped/rearranged wherever necessary.

18. Figures of last quarter are the balancing figures between audited figures in respect of the full financial year and the published year to date figures upto the third quarter of the current financial year.

19. The statutory auditors have issued unmodified opinion on the standalone and the consolidated financial statements of the Company for the year ended 31st March 2016.

For and on behalf of Board of Directors

Place: New Delhi
Date: 30th May 2016

sd/-
(K. BISWAL)
DIRECTOR (FINANCE)